The Rose portfolio has 93 holdings. 58 common stocks and 35 RICs (Regulated Investment Companies).
The Rose Portfolio
The Rose Portfolio is for real and consists primarily of 2 Roth accounts and some taxable holdings. They are all combined together by myself into this one portfolio to give control and consistency of ownership.
Next time, I will show it by sectors, but this month, you get the listing alphabetically.
Abbreviations used are as follows:
Cost/sh = Rose cost per share if known
WTB = Want to Buy price. It is the price I want for my own use, not saying it's fair or not. Use your own discretion and due diligence.
WTB Yield = the dividend yield at the WTB Rose price.
19-Div-E = Estimated Dividend per year per share.
Div Yield = Dividend yield per share at the price and yearly estimated dividend shown for Jan. 31, 2019.
VL = Value Line safety rating with 1 being the best, 5 the worst. Many are not covered.
S&P CR = Standard & Poor's Credit Rating is obtained from the subscriber service "Fast Graphs". AAA is the best investment grade "IG", and is from there, moving down to AA, A, and finally down to BBB-. Many are not covered or just have little or no debt. First shown is a quick chart of the S&P CR changes, they are also in bold in the chart that follows.
|S&P CR||S&P CR|
The more letters in the rating, the higher or better it is, so yes, AA- is better than A+.
Get ready, here is the list of 93 with all the information promised:
|S&P||Rose||01/31/19||52 week||52 week||WTB||WTB||01/31/19|
|Autom Data Proc||(ADP)||1||AA||20||141.62||$107.61||$153.51||125||2.53%||3.16||2.23%|
|Alerian MLP ETF||(AMLP)||12.35||9.94||$8.27||$11.42||8.8||8.64%||0.76||7.65%|
|Brookf Infr P||(BIP)||2||BBB+||39.24||39.1||$32.26||$42.87||34||5.97%||2.03||5.19%|
|DNP CEF Ute||(DNP)||silver||10||11.06||$9.71||$11.22||10||7.80%||0.78||7.05%|
|Johnson & J||(JNJ)||1||AAA||89.05||134.2||$118.62||$148.99||122||3.10%||3.78||2.82%|
|NY Mort Tr||(NYMTN)||22.43||22.82||$20.70||$24.64||22||9.09%||2||8.76%|
|Union Pac||(UNP)||1||A -||88.36||159.67||$121.22||$165.63||120||2.80%||3.36||2.10%|
I had 94 holdings at the end of 2018 and now have 93. I do like the 90s, I guess, and for many reasons, mostly because I was much younger then, and they had some great music.
The following chart shows the add-on buys of 12 with 1 new Canadian energy stock. 2 are completely sold and gone, with 1 being trimmed severely along with options sold on the remainder that expires in July.
|Wash P- pref||WPG-h||16.28||16.11||RE-pref|
|SOLD out||Procter-G||PG||91.34||60.61 cost||Cons-Def|
|SOLD out||Omega||OHI||34.17||33.19 cost||RE-hcare|
Why did I do what I did you might ask?
I have a plan to decrease my consumer staple holdings and put it into more fixed type HY preferred debt while maintaining the defensive nature of the portfolio. I consider fixed preferred debt holdings as also defensive in nature and provides reliable income.
OHI is the healthcare eREIT that just keeps on going up, my oh my, does it. I am amazed. I keep thinking it doesn't have more upside, but it does. Wow, I missed big time on this one. None the less, it has a frozen dividend and probably more issues to iron out. I sold out with options and covered my cost of shares and collected many many happy dividends over the years. I did have a >3% portfolio income coming from it, so it needed to be replaced. Preferred shares along with some higher yielding BDCs did just that.
Procter & Gamble
PG is showing some life with its current high perceived performance and high valuation giving me the opportunity to leave it with nice total return. The dividend yield was descending to 3% and it had about 3.2% or less dividend growth rate for the last 4 years. I can do better and I also own KMB, CL, and others in this sector.
DEO is also showing very nice upward price momentum with a lower trending dividend yield now under 2.3%. It also pays only twice per year in differing amounts, has ADR fees, not much, but all this is somewhat annoying to me. Top that off with exchange rates and not showing much dividend growth, maybe ~3%, it makes me happy to move on. I purchased it for capital gains and I have accomplished that easily in under 2 years.
ADD-ONs and new purchase
I liked adding to Target with a higher yield of ~3.8% at current valuation with upward future price trajectory. It also is a dividend champion. The dividend growth rate has been going lower, but the price here and the yield make it still attractive.
D is a utility with >5% yield. I have quite a bit, but it is defensive and a steal under $70, where I added on. It still is a steal where it is, but I love bargain basement prices. You probably have noted that in my list provided for the portfolio.
LMT, the defensive industrial company, is one I add on to when it slips in price and $258 was a low. I was only able to get a few shares, but I did get what I could. That was a yield of 3.5%. What a deal! Now, I watch and wait for the opportunity to come again.
VLO, the refiner, was yielding 4.5% and I wanted to add back some shares I sold last year for overvaluation, and it was extremely so in my estimation. It just raised the dividend nicely from 80 to 90c per Q or 12.5%. The price has jumped up a bit again. I think I will get more if it dips under $80 again and that yield.
CVE is a Canadian mostly energy company in oil and gas production and some US refining.
I sold put options last year as a suggestion of Trapping Value "TV" at The Wheel of Fortune subscriber service by The Fortune Teller. TV has written numerous articles on it last year and they are all locked up now, sorry. All in all, I paid $8.44 per share. It moved almost to $11 and now is under $8. One never knows where a stock in this industry will end up in price. I did consider adding more with a yield of ~2% here but will just hang onto this one as is for now. Capital appreciation is my goal in the long run for it, with a TV price target of >$20 in a few years and it does pay a bit to keep me having it hang around.
Portfolio now has an estimated dividend yield of 4.86% for 2019. The changes I made have been good for income which is my long-term goal. Below is a look by sectors for % portfolio value and income.
Note ~75% PV is from common stock and ~24% is in HY or RIC.
Defense remains a goal and the list/chart below shows what it looks like pulling those out specifically and adding those sectors together with the fixed and cash holdings.
50%+ value and 50%+ income, I am pleased, very pleased.
Amazing that I still have 1.3% cash and I usually have much much less. I am so pleased with the current holdings, what they provide, I can happily sit with cash and have no hurry to spend it.
Total Return "TR"
TR is the sum of portfolio value and dividends.
The Rose portfolio total return for 2018 was minus -2.62% even with dividends, glad it had a terrific 2017. My last article here did already reveal that, but I wanted to let you know I really really enjoyed seeing green this last month, who wouldn't like it. January was really joyous and brought the portfolio total return up 3.83% from 2017. It was up 6.62% from December 2018. I am sure this "whipsaw" activity will continue, so income still remains my main goal and focus for success.
Dividends And Income
Received were dividends from 37 companies and 3 specials as shown in the list/chart below.
The 7 monthly payers are shown first with EPR and STAG going to raise the next dividend for February in the new amount as shown in bold. The others that have announced Feb. are shown.
AMZA lowered the distribution by 27.2%, but not as much as I expected, but down to 8c from 11c. It possibly could go even lower again. The 16% yield is still quite amazing.
Most all remaining companies pay quarterly on the month of 1-4-7-10 basis, with 2 listed at the end paying the months of 1-3-6-9.
The following gave raises noted in bold from the last paid dividend:
- ADP raised 10c from 69c to 79c, a 12.5% raise.
- VTR gave a disappointing 0.0025c raise from 0.79c. It probably should have been expected as OHI has frozen theirs. They both are experiencing healthcare provider issues.
- WPC raised its usual quarterly payment a minuscule amount, as expected and shown in the chart.
Special dividends were 5c from AJX, 15c from CHMI, and CGBD was 20c, all very nice and pleasing.
As reported in the last article, income was up 21.07% for the full year. January 2019 income was up 29.57% from Jan. 2018 and I estimate the next full year to be up 9.32%.
The chart below shows you where the income comes from and by % Portfolio Income. It is again divided by common stock, RIC, and fixed investments. It shows how a little HY in value (I have ~25% PV) can pop income.
After this, next list/chart is how my January activity changed the amounts of income up or down from December.
|Common Stock Ticker||2019 Inc||RIC||Fixed|
|RDS.B, XEL||1.6%||ARCC, OXLC|
|BCE, PFE||1.3%||CGBD, TCPC||NYMTN|
|BA, CAH, WEC||1.1%||IRM||CIM.PB|
|CMI, LMT, TGT||1.0%||PFLT||WPG.PH|
|BIP, FTAI, GPC, HD||0.8%||SKT, STAG|
|AVGO, MCD, 3M, OXY, PEP||0.7%||BXMT, CORR|
|AMGN, VLO||0.6%||DLR, FSK, RC, SPG||NS.PB, PMT.PB|
|CVA, HSY, INTC, LNT||0.4%|
|CVS, DEO, MA, MDLZ, UNP||0.3%|
|ADP, CL, KHC, V||0.2%||AMLP, UNIT|
Changes in income are shown as follows:
AMZA did move up some as I had figured a larger distribution cut in December. It could change again as I believe it should probably be lower, but for now, I take what comes my way.
I still look at 2018 as successful in providing rising and steady dividend income, which was the goal. Portfolio value and total return on average was also successful for the last 2 years or more, no complaint. I will continue to look to add from a value perspective and that goes for any sector or any holding except AMZA. I hold many core positions and those will ultimately always reside in the Rose portfolio; JNJ, KMB, SO, D, XOM, PEP, BA, LMT, T, and VZ to name a few. I have trouble saying no to any of those and some others. It was wonderful seeing green in this joyous January along with the income created to hopefully bring happy investing 2019 to us all.
Disclosure: I am/we are long VLO. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
Additional disclosure: and all 93 stocks in the charts/list.